The brand is planning to open at least 60 more stores this fiscal, along with increasing its inventory and marketing activities
Mumbai: Pune-based fashion jewellery brand Gargi by PN Gadgil & Sons (PNGS) plans to embark on its next phase of growth which includes increased visibility and presence, a senior executive told IndiaRetailing.
Its strategic growth plan includes opening at least 70 new stores this fiscal, along with increasing its inventory and marketing activities.
To fund its plans, the 2022-listed company will raise Rs42.998 crore through a preferential issue of equity shares to its promoters and public investors. The company intends to issue 747,800 equity shares at Rs575 per share, including a premium of Rs565 per share.
“The proceeds from this preferential issue will primarily support our aggressive growth plans,” stated Aditya Modak, Co-founder of Gargi by PNGS.
Gargi, which is present in less than 10 states in the country through 26 shop-in-shops (SIS), now wants to ramp up its presence in more geographies through 60 SIS and 10 stand-alone stores, which will be a combination of company-owned and franchise-owned stores, measuring around 500 sq. ft. – 600 sq. ft.
“Gargi aims to expand its presence in cities across Maharashtra. Afterwards, we plan to target major cosmopolitan cities in India, such as Bangalore, Hyderabad, Indore, Kolkata, Chennai, Delhi, and NCR,” Modak said speaking about the geographies that the brand is now targeting.
“Following our establishment in these locations, we will focus on other developing tier 1 & 2 cities,” he added.
While the overall investment per store depends on various factors like location, product composition, and inventory, Modak revealed that typically, the investment in a new store, covering interior design, lease, deposits, inventory, etc, will be “within a range of Rs 30 to 50 lakh per store.”
In addition to opening new stores, the funds will be used to acquire new inventory as well as launch a nationwide campaign to become more visible.
Recently, the brand partnered with the reality TV Show Bigg Boss Marathi Season 5, which is being aired on Colors Marathi.
“Our brand, PN Gadgil & Sons, has had a long-standing relationship with the channel, having been involved with previous seasons of Bigg Boss. This time, Gargi by PNGS is associated with Bigg Boss Marathi because the show’s target audience aligns perfectly with our brand’s target audience,” explained Modak who is also the chief financial and operating officer of PN Gadgil & Sons.
“It is an excellent platform for us to create brand awareness, increase market penetration, and acquire new customers. This strategic partnership aims to leverage the show’s popularity to strengthen our brand presence and reach,” he added.
